India, Sept. 16 -- The US Federal Reserve raised its benchmark interest rate by 0.25 percentage point on Wednesday, September 16. The move was widely expected by Wall Street. After the increase, the Fed's target range for the federal funds rate moved to 3.75% to 4%. This is the first time the central bank has raised rates in three years.

The Fed's latest decision comes as it continues to deal with stubborn inflation. A recent rise in oil prices has added to concerns about inflation staying high. The central bank also signalled that another rate increase could come before the end of 2026. This means borrowing costs could rise again later this year.

Historically, the Fed has often raised interest rates more than once after starting a rate...